Heavy Competition is Beneficial for Startups


 
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Heavy Competition is Beneficial for Startups
Jaap de Jonge, CEO, Netherlands, Editor
Having studied tax data of 2 million companies that were launched in the UK between 1995 and 2005, Andrew Burke and Stephanie Hussels in a short article "How Competition Strengthens Start-ups" (HBR March 2013), report that companies launched in crowded markets had higher odds of failure in the first year, but once they survived this year, had a much greater chance of surviving the first 3 years.
Competition apparently helps startups thrive... The authors explain this effect by stating that a challenging environment causes young firms to focus extra on satisfying client needs on one hand and keeping costs down to a minimal level on the other hand.
They advise venture capitalists not to spoil young entrepreneurs with too much seed capital as this might decrease the appetite to build a lean, low cost company....Register
 

 
Heavy Competition is Good for Start Ups
Gandhi Heryanto, Management Consultant, Indonesia, Member
Yes, off course as a start up we can learn a lot about our business and customers by looking at how our competitors do business:
- How they are a...
 

 
Heavy Competition is Beneficial for Startups
Badmus bola, Analyst, Member
@Gandhi Heryanto: It goes beyond this. It is at this time start ups decide what strategy to adopt and get set for the...
 

 















 


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